How is the annual supervisory fee calculated?
The ECB calculates the annual costs of its supervisory tasks to define the total amount of the annual supervisory fees. The overall costs are then split into two categories:
- direct supervision - to be levied on significant banks, which are directly supervised by the ECB
- indirect supervision - to be levied on less significant banks, which are directly supervised by the relevant national supervisors
The decision on the total amount of annual supervisory fees is published by 30 April of each year.
How much does each bank pay?
The annual supervisory fee for each bank consists of a:
- minimum fee component
- variable fee component
Minimum fee component
The minimum fee component is based on a fixed percentage of the total amount of the annual fees for significant and less significant banks.
|Minimum fee component|
The fixed percentage is 10% of the total amount of annual fees for significant banks and is split equally among the fee debtors in this category.
For smaller significant institutions with total assets of €10 billion or less, the minimum fee component is halved.
|Less significant banks||
The fixed percentage is 10% of the total amount of annual fees for less significant banks and is split equally among the fee debtors in this category.
What determines the variable fee component?
The variable fee component covers the remaining amount of the fee after the deduction of the minimum fee component.
Each bank pays a share of this amount based on its importance and risk profile. This means that larger and riskier banks pay a higher variable fee component.
Estimate your fee
To estimate your annual supervisory fee, you need the following information.
Minimum fee component
To estimate this you need:
- total annual fees for your category (significant or less significant banks)
- number of fee debtors:
Average number of fee debtors
as at end July 2017Significant banksLess significant banks
Note: The number of fee debtors is different to the number of supervised banks.
Variable fee component
To estimate this you need:
- your own fee factors (total assets and total risk exposure)
- total fee factors: the sum of the total assets and total risk exposure in your category of supervised banks (significant or less significant). These are shown in the table below. Assets of subsidiaries located in non-participating countries and third countries are excluded in the table. Banks should exclude these as a rule for the purposes of calculating their fee factors. Banking groups may decide to include such assets (e.g. if they consider that the burden of calculating the amounts to be excluded would be greater than the expected reduction in the supervisory fee).
Aggregate average fee factor values (EUR billions)
reference date 31 December 2016Significant banksLess significant banks
Total assets 19,781 4,625 Total risk exposure 6,577 2,141Fee factor values of previous years Aggregate average fee factor values (EUR billions)
reference date 31 December 2015Significant banksLess significant banks
Total assets 20,233 4,469 Total risk exposure 6,773 2,137 Aggregate average fee factor values (EUR billions)
reference date 31 December 2014Significant banksLess significant banks
Total assets 20,527 4,669 Total risk exposure 6,811 2,219
- number of fee debtors for which the minimum fee component is halved (this is done for significant banks and significant banking groups with total assets of €10 billion or less – only relevant for significant banks’ calculations); for 2017 the number was 18
Estimate your fee – examples for fee period 2017
Equipped with the above data, you can now estimate your fee using the equations in the examples below.Example for less significant banks
- your bank’s total assets: [for example purposes: €1,600,000,000]
- your bank’s total risk exposure: [for example purposes: €700,000,000]
- total annual fees for less significant banks: €33,677,998
- sum of total assets of less significant banks: €4,625,000,000,000
- sum of total risk exposure of less significant banks: €2,141,000,000,000
- average number of less significant fee debtors: 2,916
Minimum fee component = (10% * 33,677,998 )/2,916 = 1,154.94
Variable fee component = (50% * 1,600,000,000/4,625,000,000,000 + 50% * 700,000,000/2,141,000,000,000) * 90% * 33,677,998= 10,197.81
Annual supervisory fee = 1,154.94 + 10,197.81 = 11,352.75
- your bank’s total assets: [for example purposes: €166,000,000,000]
- your bank’s total risk exposure: [for example purposes: €55,000,000,000]
- total annual fees for significant banks: €391,279,654
- sum of total assets of significant banks: €19,781,000,000,000
- sum of total risk exposure of significant banks: €6,577,000,000,000
- average number of significant fee debtors: 119
- number of fee debtors for which the minimum fee component was halved: 18
Minimum fee component = (10% * 391,279,654 )/119 = 328,806.43
Before calculating the variable fee component, we need to take account of those banks for which the minimum fee component was halved, as follows: 391,279,654 – (119 – 18) * 328,806.43 – 18 * 328,806.43/2= 355,110,946.70
Variable fee component = (50% * 166,000,000,000/19,781,000,000,000 + 50% * 55,000,000,000/6,577,000,000,000) * 355,110,946.70 = 2,974,829.47
Annual supervisory fee = 328,806.43 + 2,974,829.47 = 3,303,635.90
The above information can only help you to estimate your fee. The ECB calculates your fee based on the fee factors you provide, and the exact amount levied by the ECB is stated in your annual supervisory fee notice.
Furthermore, any fee estimate cannot be exact because the number of supervised banks and, accordingly, the number of fee debtors is continually changing. The average number provided above is therefore purely indicative; it is not linked to the number of existing supervised banks for any specific reference period. In addition, retroactive corrections are made to fees when a bank’s situation changes after the cut-off date for the annual calculation of the supervisory fees (end of July), or when such changes are only validated by the national competent authority after the cut-off date.